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Basics of a 1031 exchange

If you are planning on selling and buying business or investment assets this year, a 1031 exchange is a great way to defer taxes on capital gains or depreciation recapture.

You may be wondering, what types of assets are exchangeable? Generally all real estate is considered to be “like-kind.” However, in other types of exchanges, defining “like-kind” can be somewhat more difficult. Section 1031 also applies to like-class properties (categorized using the North American Industry Classification System) which include:

NES Financial is one of the nation’s leading qualified intermediaries, offering a team of industry experts with experience in all market segments and exchange types. In fact, our general counsel helped develop significant 1031 guidance during her tenure at the IRS National Office in Washington, D.C. We are unique in that we have innovative technology-based solutions that can be customized to facilitate even the most complex 1031 exchange transactions.

To find out if a 1031 exchange is right for you, contact us. We would be happy to discuss your options with you.